As we head into 2025, the construction industry's use of advanced technologies and sustainable practices is driving significant changes in project planning, workforce development, and sustainability. Emerging tech, market dynamics, and regulations are driving new ways of working and innovating.
TABLE OF CONTENTS
12 Forecasts for Future Construction Technologies
1. Labour Shortages and Workforce Upskilling
The construction industry is facing a significant labour shortage, with an average of 382,000 job openings each month between August 2023 and July 2024.
Labour attraction is a predominant issue for construction firms, affecting both skilled and unskilled positions, with a growing demand for digital skills.
An aging workforce and a perceived lack of interest among younger generations create a unique challenge for construction firms.
2. Cost Overruns and Supply Chain Issues
The rising costs of construction materials due to inflation and interest rates, along with frequent disruptions of supply chains, are significant challenges facing the building sector.
Essential input costs, including steel, lumber, and concrete, have risen due to factors such as inflation, increased global demand, and geopolitical tensions.
Project delays and cost overruns are affecting the profitability of many firms in construction.
Firms are forced to either stretch their budgets or lower profit margins.
3. Artificial Intelligence (AI) and Automation
AI can create tremendous value in construction processes by integrating advanced technologies like AI to improve efficiency and reduce errors. It can be used to create new construction schedules by exploring thousands or millions of scenarios.
This technology can also be used for image recognition, analysing photos of materials on the job site and identifying materials at risk.
Industries, especially construction, can use AI to make better decisions by providing real-time data and insights.
4. Building Information Modeling (BIM) and Digitalisation
The construction industry is rapidly embracing digitalisation, integrating advanced technologies and modern materials to enhance efficiency and project outcomes.
Innovations such as Building Information Modeling (BIM) and the Internet of Things (IoT) are transforming traditional construction practices.
By leveraging digital tools, construction firms can optimise workflows, minimise waste, and improve overall building performance.
5. Building Analytics and the Internet of Things (IoT)
Building analytics and the Internet of Things (IoT) are revolutionising the construction industry by providing unprecedented real-time data and insights.
IoT sensors can monitor various environmental factors such as temperature, humidity, and air quality, enabling building owners to optimise energy consumption and reduce waste.
This technology not only improves energy efficiency but also helps in predictive maintenance, identifying potential issues before they escalate into major problems.
By leveraging building analytics, construction firms can improve overall building performance, reduce downtime, and ensure a more sustainable and efficient operation.
6. Virtual and Augmented Reality
Virtual and augmented reality (VR/AR) technologies are making significant inroads into the construction industry, transforming how projects are planned and executed.
These technologies offer immersive training experiences for construction workers, significantly reducing the risk of accidents and enhancing overall safety on construction sites.
Additionally, VR/AR can be used to create detailed visualisations of construction projects, allowing architects, engineers, and contractors to identify and address potential issues before they become costly problems.
7. Modular and Prefabricated Construction
Modular construction methods and sustainability are becoming increasingly important.
Prefabrication and modular construction are experiencing a significant boom, driven by a shortage of skilled labour and advancements in technology. These methods facilitate quicker construction timelines, reduce waste, lower labour expenses, and minimise environmental impact.
Modular construction can decrease waste by as much as 90% compared to traditional building methods. Additionally, self-healing concrete is emerging as an innovative building material that enhances the durability and lifespan of concrete structures.
8. Environmental Impact and Sustainability in Construction
Sustainability is becoming a key focus in the construction industry, driven by changing customer expectations, regulatory requirements, and the shift toward greener building practices. Construction firms are increasingly adopting sustainable materials, energy-efficient solutions, and waste reduction strategies to minimize their environmental impact.
Green buildings—featuring elements like solar panels, green roofs, and rainwater harvesting systems—not only reduce energy consumption but also improve indoor air quality. Additionally, the rise of modular and eco-friendly construction methods is promoting the use of advanced, resource-efficient building materials, ensuring long-term sustainability
9. Enhancing Construction Worker Safety
Safety has always been a priority on the construction site, with a heightened focus on integrating technology to enhance worker safety and improve productivity.
The industry is shifting from a culture of minimising labour costs to prioritising worker safety and adhering to safety regulations.
Technology is crucial for improving safety, utilising wearable devices and AI-driven analytics to monitor and reduce potential risks effectively.
Contractors increasingly utilise cutting-edge safety technologies, such as advanced AI-driven monitoring systems and state-of-the-art wearable sensors.
10. Risk Management and Resilient Construction
As the world confronts the challenges posed by climate change, building resilience into the future of the construction industry becomes imperative.
The industry is expected to continue to focus on these trends.
Resilient construction involves designing and building structures that can withstand natural disasters and other extreme events.
Risk management involves identifying and mitigating potential risks, such as labour shortages, supply chain disruptions, and environmental concerns.
11. Bridging the Construction Labour Gap: Education & Innovation
The construction industry is facing a significant labor shortage due to an aging workforce and a lack of younger workers entering the field. To combat this, companies are investing in comprehensive education and training programs, including apprenticeships, vocational courses, and online learning, to attract and retain skilled talent.
Additionally, firms are adopting flexible work arrangements, leveraging advanced technologies like drones and robotics to boost productivity, and partnering with schools and community organizations to promote construction careers. Competitive salaries and benefits further help in retaining talent, ensuring a steady and skilled workforce for the industry's future.
12. Private Equity’s Impact on Construction
Private equity has significantly influenced the construction industry, providing essential capital and strategic guidance.
Private equity firms bring substantial financial acumen and industry insights to construction projects.
These investments not only bolster a company's financial stability but also offer valuable industry expertise and mentorship.
Engineering and construction companies are anticipated to concentrate on generating value and maintaining growth through strategic divestitures, optimised capital allocation, cash flow enhancement, and increased private equity investments by 2025.
Conclusion
The construction industry is experiencing transformative changes driven by technology, market dynamics, and sustainability. These shifts present challenges like labour shortages and supply chain disruptions but also offer opportunities for innovation. Key technologies such as virtual reality, BIM, and IoT are revolutionising construction processes.
Additionally, digital tools like the iDlvr app are streamlining the ordering of construction materials online, enhancing supply chain efficiency and reducing project delays. By leveraging these advancements, construction firms can improve productivity, sustainability, and competitiveness in the evolving market landscape.
